Shane Solly: Harbour Asset Management spokesperson on the economic impact of Joe Biden dropping re-election bid

The US dollar and Treasuries are likely to see a knee-jerk bid higher after Joe Biden dropped his re-election bid.

Investors will see this development as bringing a fresh level of uncertainty about the final outcome of the US elections.

Shane Solly from Harbour Asset Management says this is definitely a spanner in the works.

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Episode Transcript

Speaker 1 (00:00):
With me right now. Is Shane Soley of Harbor Asset
Management has Shane hi Heaver? So Is Sir Steven Tindall
the answer to the warehouse problems?

Speaker 2 (00:08):
Well, he's certainly been a tough time for the warehouse
and there's been a few changes there. But yes, Stephen
and the Tindal Foundation, combined with Adamanti Capital Partners made
a have made proposed takeover for the business. Companies are
saying just a little bit careful, it's not a not
time to sell your hues as Yep, it's not a
full approach, it's not quite a full offer, but certainly

(00:31):
with mister Tinder and the Tindal Foundation controlling forty nine
percent of the warehouse, they are quite a long way
there already. So stop praising it up twenty five percent
on the day to a dollar forty five So big burst.

Speaker 1 (00:41):
What do you reckon his motivation is? Is he just
getting tired of how poorly his own shares are performing?

Speaker 2 (00:46):
Yeah, Look, I think he's probably observing that, you know,
the market is being a little bit unkind to the
longer term prospects for the business. But it probably needs
a bit of work, a bit of panel beating, it's
not a great term fixing reshaping. You can probably do
better with total control.

Speaker 1 (01:04):
What do you make Shane of the Veda offer.

Speaker 2 (01:07):
Yeah, so another another bid today. It's a stone Peak,
it's a US infrastructure real estate group. The bid one
point two billion dollars for to take over all of
our DADA. That's a dollars seventy bid, sixty five percent
premium to where it was on Friday. It's pretty chunky,
look and that's all about taking advantage of the fact
that the market has been pretty harsh on anything residential related.

(01:31):
Did you think that's interest rates into the And certainly
the our data team have been doing a good job
in tough conditions and there's just a big gap there.
And soon it was sending the board, the ADA board. So yes,
we're open to this proposal. It will still to get
to here. They've got to get through overseas investment acts,
through the Overseas Investment Office, but certainly recent presidents of
use he should be able to get there. Again. The

(01:55):
stop place up fifty six percent to a dollar sixty
one to day, So there's a big moves.

Speaker 1 (02:00):
I mean, it is amongst the retirement village stocks that
are doing it a bit tough obvious reasons at the moment.
When do you think it twos a round for them?

Speaker 2 (02:06):
Yeah? I think this is the piece that as investors
we're all waiting for a tune, and particularly the ability
for people to sell their homes to move and lots
of demand from senior older New Zealanders wanting to move
into villages, but of course most still have their money
wrapped up in their home and if you can't see
your home, it really slows things down. So that's the key.

(02:27):
And of course the other week we saw the Reserve
Bank New Zealand show the first inclining they're going to
look at cutting rates with the Munshie Policy Review, where
they talked that we think we're there. So we've already
seen today another round of mortgage rate cuts, this time
from the ASP. So we've seen several banks in the
last week or so come up with reasonable cuts to
the morghich is that might be enough just to underpin

(02:49):
the residential market, get it back. We're here again, which
will help this retirement h Q sector.

Speaker 1 (02:55):
You're too right, Hey, so did Joe Biden stepping aside
have any impact on the dollar in the markets.

Speaker 2 (02:59):
Yeah, yeah, Look, we've seen a little bit of alatility
out there. Actually, this is probably the key change that
in this potential recovery of Democrat Poland just throws a
bit of a spanner in the works. The market had
moved to Hey, the Republicans are going to win. All
the Trump trades are on things that are benefiting from
Trump Republican policies, such the banks, small cap companies, energy.
They've had a good rally. Certainly in the last twenty

(03:22):
four hours we've seen potentially some of that swing and yeah,
the US dollar has been one part of it. We'll
see the night. What happens in the US is the market.
So just a little bit of a change in time.
There's got a long way to go though here. And
you never want to doubt the potential for a Trump
Republican grouping given how well they're Poland.

Speaker 1 (03:44):
I would agree with you on that. Hey, Shane, thank
you as always appreciate it. We'll talk to you next week.
Is Shange solely of Harbor Asset Management. For more from
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